In the first quarter of 2019, Netflix pulled in an additional 9.6 million subscribers, a new growth record. The company also welcomes Disney and Apple, saying that "we’re excited to compete".
Netflix: Consumers will benefit
When Disney pulls its content from Netflix and other services to launch a competing service, who will benefit? Netflix believes that "the clear beneficiaries will be content creators and consumers" due to "many companies vying to provide a great video experience".
The comments were made in Netflix's earnings report and the company furthermore used the opportunity to welcome Apple and Disney into the streaming market. "Both companies are world class consumer brands and we’re excited to compete", said Netflix, adding that they do not anticipate the launch of Disney+ and Apple TV+ to materially affect growth.
- "We don’t anticipate that these new entrants will materially affect our growth because the transition from linear to on demand entertainment is so massive â€‹and because of the differing nature of our content offeringsâ€‹. We believe we’ll all continue to grow as we each invest more in content and improve our service and as consumers continue to migrate away from linear viewing (similar to how US cable networks collectively grew for years as viewing shifted from broadcast networks during the 1980s and 1990s)," said Netflix.
Netflix added that in terms of streaming hours its share "still only represents roughly 10% of total TV usage".
In the first quarter of 2019, Netflix saw record growth of 9.6 million new subscribers. Netflix now has 148.86 million paying subscribers - and at least twice as many viewers. It expects to reach 150 million subscribers very soon.
In addition, the company announced that it will running a test by releasing weekly top 10 lists of the most popular content across various categories on the UK service. After a few months, Netflix will decide whether to expand the test to other regions.
Netflix is the world's leading streaming service but later this year Apple, Disney, and WarnerMedia will enter the arena. Some have questioned whether Netflix can continue to grow briskly when faced with increased competition. So far, Netflix's growth continues at record pace but the real test will come later this year and next year.